Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027

The Centers for Medicare & Medicaid Services (CMS) today announced significant premium savings for millions of Medicare beneficiaries in 2027, with weighted average MA premiums projected to fall more than 16% from 2026 to 2027, and average prescription drug premiums in Medicare Advantage projected to plummet 38%.

Additionally, average premium for stand-alone Part D prescription drug plans is projected to rise by less than $1 per month in 2027. Despite speculation and misleading reports related to the appropriate sunsetting of the Part D Stabilization Demonstration Project, there is broad pricing stability across the Part D market.

The strong 2027 outlook means Medicare beneficiaries will continue to have access to affordable coverage and broad plan choice without relying on billions of dollars in temporary subsidies to insurance companies. More than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage Plan, while 97% will have access to 10 or more options.

CMS is releasing this key information ahead of the upcoming Medicare Open Enrollment, which runs from October 15, 2026, through December 7, 2026.

“CMS is fighting to keep high-quality care options affordable and accessible for the millions of beneficiaries who rely on Medicare Advantage and Part D prescription drug plans,” said CMS Administrator Dr. Mehmet Oz. “By slashing handouts to big insurance companies, CMS is keeping premiums stable while ensuring that 97% of Medicare beneficiaries have access to 10 or more MA plans and that 93% of non-low-income beneficiaries can get an enhanced Part D plan for less than $6 a month. We urge beneficiaries to use Open Enrollment as an opportunity to review their coverage, compare options, and pick the plan that best suits their needs and budget.”

Medicare Advantage

The weighted average monthly premium across all MA plans, including plans with prescription drug including plans with prescription drug coverage and Special Needs Plans, is projected to decrease from $14.37 in 2026 to $12.00 in 2027, a decline of 16.5%. Supplemental benefit offerings, including hearing, dental, and vision benefits, are expected to remain stable.

Based on plan projections, enrollment in MA is estimated to be 34 million in 2027, representing approximately 47.4% of all people enrolled in Medicare. Plan enrollment projections have historically understated actual enrollment, and CMS expects actual 2027 MA enrollment to again be more robust than current plan projections indicate.